Any time of year can be the right time to get your home office organized-and while you’re at it, your finances, too. Here are some tips:
• Take out the garbage. Start with your desktop-not your computer, the real one. If your desk is covered in paperwork, weed out what’s important and store key documents in a central place. This could be a good time to dust off your credit report as well. If you are the victim of identity theft, one of the first places it can show up is on your credit report.
Even though new legislation entitles you to one free report each year, it’s estimated that only 10 percent of consumers are taking advantage of it. According to Money magazine, 33 percent of those who did get a report found errors.
To request a copy, visit annual creditreport.com or contact one of the major credit bureaus: Equifax, Experian or TransUnion.
• Make everything within reach. When organizing your office, it’s important to keep frequently used items close at hand. The same applies to your financial goals. Set goals you can reach. For example, start your retirement fund by putting a set amount every month into an Individual Retirement Account (IRA).
• Have a backup plan for files and finances. If you have important documents stored on your computer, back them up onto CDs once a month and store them in a fireproof safe. When it comes to financial backup, create an emergency fund of at least three months’ salary. Also, update your life insurance policy. Newsweek recently stated that for a married couple with two children, it is advisable to have life insurance protection that equals eight times your annual income. And while you’re at it, make sure your will is current.
• Shred it and forget it. If you don’t have a paper shredder, get one. Shred old quarterly statements on investments once you have the annual statements. Also, shredding anything you don’t need that contains your Social Security number or birthdate can be your first line of defense against identity theft.
• Make it automatic. One easy way to eliminate clutter may be to sign up for online banking and cut down on the need for paper statements. Plus, you can set up monthly withdrawals from your checking account that are deposited into an IRA-starting with as little as $25 a month.
The guidance of a financial professional can often be helpful when making changes such as these. For example, the financial professionals at Primer have created a guide that shows you how to take control of your financial life.
We all like to be smart when it comes to our finances. At Irish Life, we think its only right to help our customers in any way we can. With our top 10 financial tips we hope to give you a helping hand when it comes to managing your finances.
1. Plan a household budget:
A family budget can help you control your household spending so that you have enough money to pay your bills and cover the basics on an ongoing basis.
2. Start an emergency fund:
Always have some money put by for unexpected events – we never know what’s around the corner. A rule of thumb is to have at least 3 months’ salary saved for emergencies.
3. Get better value:
The Economiser is an interactive tool from the National Consumer Agency that helps you compare your spending against what other people are spending in areas such as mobile phones, broadband, groceries and energy. This is an external website not associated with Irish life.
4. Manage your credit card.
Here’s some handy tips:
- Set up a direct debit; You can choose what percentage you want to pay and thus avoid any unnecessary interest and charges by always paying on time.
- Plan your spend; Make a list and decide what you will use your credit card for to avoid impulse spending.
- Check your statement; Either over the phone or on-line, reviewing your account regularly will keep you in control of your spending and avoid accidentally going over your credit limit.
5. Get protected: Life insurance is not a luxury:
If you have dependents, a life insurance plan is not a luxury, it’s a fundamental need. It helps maintain a family’s regular standard of living if something happened to the main breadwinner.
Our simple Life Insurance calculator can help you understand your family's protection needs.
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